Construction on the nation’s largest offshore wind project is set to resume after a federal judge temporarily lifted the Trump administration’s suspension of the Coastal Virginia Offshore Wind (CVOW) project, delivering a major win for Dominion Energy and the U.S. renewable energy sector.
Judge Jamar Walker of the U.S. District Court for the Eastern District of Virginia granted Dominion Energy’s request for a preliminary injunction on Friday, allowing work to restart while the legal challenge moves forward. The decision prompted shares of Dominion Energy, the project’s owner and developer, to rise about 1%.
The Department of the Interior had halted construction in December, citing national security concerns as it moved to stop five offshore wind projects along the East Coast. Dominion challenged the decision in court, calling the suspension “arbitrary and illegal” in its lawsuit.
“Our team will now focus on safely restarting work to ensure CVOW begins delivery of critical energy in just weeks,” a Dominion spokesperson told CNBC in a statement Friday.
“While our legal challenge proceeds, we will continue seeking a durable resolution of this matter through cooperation with the federal government,” the spokesperson said.
Dominion previously warned that extended delays could have serious implications for power reliability, particularly in a region that supports major military operations and fast-growing technology infrastructure.
“Stopping CVOW for any length of time will threaten grid reliability for some of the nation’s most important war fighting, AI and civilian assets,” Dominion said in December.
The Coastal Virginia Offshore Wind project consists of 176 turbines located roughly 27 miles off the coast of Virginia Beach. Once fully operational, the project is expected to generate enough electricity to power more than 600,000 homes. Dominion plans to begin dispatching power by the end of the first quarter of 2026.
The project plays a critical role in meeting rising electricity demand in northern Virginia, which has become the world’s largest data center market. Data centers are placing increasing strain on regional grids as artificial intelligence workloads and cloud computing operations expand.
CVOW is not the only offshore wind project affected by the Trump administration’s actions. Four additional projects were also targeted in December: Vineyard Wind 1 off Massachusetts; Revolution Wind off Rhode Island; Sunrise Wind near Long Island and New England; and Empire Wind 1 south of Long Island.
Earlier this week, federal judges ruled that Revolution Wind and Empire Wind could resume construction, signaling a broader judicial pushback against the administration’s effort to halt offshore wind development.
With multiple projects now restarting, the rulings collectively underscore the growing legal and economic importance of offshore wind as a key component of U.S. energy reliability, decarbonization goals, and data-driven power demand.
Originally reported by Spencer Kimball@spencekimball in CNBC
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